Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Canada Dollar Falls to Lowest Since 2011 as Payrolls Contracted

July 5 (Bloomberg) -- The Canadian dollar weakened past C$1.06 per U.S. dollar for the first time since October 2011 as the country lost jobs in June, adding to speculation the Bank of Canada may end its leaning toward raising interest rates.

The currency fell to the lowest level since October 2011 against its U.S. counterpart as Canada lost 400 jobs in June after adding 95,000 the month before, Statistics Canada reported today. A Bloomberg economist survey had called for the country to lose 7,500 jobs. The jobless rate was unchanged at 7.1. The U.S. created 195,000 jobs in June, exceeding the 165,000 called for in a Bloomberg survey. The Bank of Canada, which has included language warning of rate increases in policy statements for more than a year, will make its next rate decision July 17.

“It would likely contribute to the market’s possible expectations that the tacit hawkish bias the Bank of Canada now could be guided more dovishly,” Jack Spitz, Toronto-based managing director of foreign exchange at National Bank of Canada, said before the report. “The reaction would be one of disappointment from a monetary policy perspective in Canada.”

The loonie, as the Canadian dollar is known, fell 0.9 percent to C$1.0607 per U.S. dollar at 8:37 a.m. in Toronto. One loonie buys 94.28 U.S. cents.

To contact the reporter on this story: Ari Altstedter in Toronto at aaltstedter@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.